SAP S/4HANA Material Ledger Actual Costing: Enhance Inventory Valuation & Profitability Analysis

The article outlines the benefits of SAP S/4HANA Material Ledger Actual Costing over traditional standard costing, emphasizing its ability to provide accurate product costing, improved inventory valuation, and better profitability analysis while detailing implementation steps, configuration options, and advanced features like the Actual Costing Cockpit.

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Explore the critical advantages of SAP S/4HANA Material Ledger Actual Costing over traditional standard costing. This comprehensive overview details how activating Material Ledger Actual Costing provides accurate product costing, precise inventory valuation, and enhanced profitability analysis. Learn about the Periodic Unit Price (PUP), parallel valuation capabilities, and the Material Price Analysis (CKM3N) screen. Discover how this functionality addresses challenges like outdated standard costs and complex variance analysis, leading to better US GAAP compliance and automated financial processes. Understand the configuration steps, the Actual Costing Cockpit (CKMLCP), and the Alternative Valuation Run (AVR). This session is crucial for SAP FICO and controlling professionals looking to optimize their S/4HANA finance landscape and gain deeper insights into cost of goods sold (COGS) and margin analysis. In this webcast with FI/CO expert Dawn Watts, you will learn the following:

Why choose actual costing versus standard costing?
What does it take to active actual costing in S/4 HANA?
What configuration is required to setup actual costing in S/4 HANA?
What does the actual costing cockpit look like and what are the steps to complete a costing run?
What is an alternative valuation run and why do you use it?
What are the pros and cons of activating and using actual costing?

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